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Cindy David - What Every Canadian Needs to Know About Retirement

Cindy David What Every Canadian Must Know About Life Insurance

Manage Risks

MANAGE RISKS

Asset & Investment Protection

You can protect your business assets and investments from risk. You likely intend for your business assets to provide you with solid retirement income. Without proper planning, these assets – as well as current and future income – can be put at serious risk from the following:

Changing market conditions

Inefficient tax planning

Divorce

Bankruptcy

Lawsuits

Death, disability, or illness of a partner.

Ensure that your hard work and years of effort don’t go to waste. A multitude of economically feasible options are available to shield your business from these risks. Expect the best while planning for the worst by protecting your business, your income and your family. As part of your comprehensive plan, the Cindy David Financial Group will thoroughly review your assets and investments and assist you in their appropriate, secure structure. Together, we will create the plan that will help you achieve your goals and protect you from manageable risks.

Protect your key people

Your people are your company’s greatest resource. Losing a key player to disability, illness, or death, can be catastrophic. Losing a staff member can end up costing thousands, causing undue financial strain. And when there’s a serious blow to your financial stability, stakeholder confidence and employee morale also suffer. In a worst case scenario, you may be forced to sell the business or its assets at fire sale prices to your competitors.

Premature Death

Key person insurance is specifically designed to cover the risk associated with losing staff. It provides your company with protection should anything happen to one of your key employees or business partners. The compensation from the insurance allows your company the time it needs to get back on its feet and provides the funding necessary for finding and training a replacement. It also gives you and your employees’ peace of mind that the company can continue to be productive in the case of tragedy. It also protects the investment of your creditors; in fact, many lenders require a business to take out key person insurance on people they consider important before financing the company.

Disability

In addition to life insurance, many businesses also invest in disability insurance as part of their key person protection plan. This helps cover temporary losses in productivity while a crucial employee is rehabilitating. The odds of becoming disabled increase with age – meaning that more protection will be needed as the workforce ages. Since it’s much more likely that an employee will become disabled than die during his or her working years, insuring against the loss incurred by disability is a smart business move.

How much is disability coverage is enough? Try these handy calculators:

The odds are 1 in 4 that you’ll suffer a life-threatening illness during your lifetime. While it’s likely that you will survive, your retirement plans could be very seriously damaged.

Critical illness insurance provides you with a lump sum benefit if you contract a covered illness. The money can be used however you wish, whether it is to fund private or alternative medical treatment, pay down a mortgage or other debts, or even finance a holiday to aid recovery – all without dipping into your retirement fund.

A more comprehensive plan, and the type of plan that we prefer to recommend at Cindy David Financial Group, provides a more thorough coverage, including:

Heart attack

Stroke

Coronary bypass

Life-threatening cancer

Kidney failure

Major organ transplant

Paralysis

Multiple sclerosis

Blindness

Deafness

On top of this, there may be “early intervention” benefits that provide a portion of your benefit if you receive treatment for specified early onset conditions. As a business owner, you may find value in critical illness coverage for:

Nobody’s future plans include dying young, but failing to plan for a worst case scenario leaves your family open to significant risk. Life insurance guarantees ongoing financial support to help surviving family members live comfortably if something happened to you. With the proper amount of coverage, your spouse could maintain the same standard of living while taking the time to grieve and get organized. In considering your needs, we’ll help you review regular household expenses, final expenses such as medical and funeral costs, future family income, and debts such as your mortgage, car payments, loans and credit cards.

Becoming disabled

Your financial future depends on your ability to earn an income. Disability insurance provides a monthly payment to replace your regular income if you’re unable to work. If you have children or other dependents, they rely on your income-earning ability as well. For example, if you support aging parents, consider their financial and healthcare needs if something were to happen to you. Bear in mind:

Your group coverage through work or a professional association, while valuable, often has restrictions and coverage limits.

Unemployment insurance only covers your income for 15 weeks.

Worker’s Compensation only covers accidents that are work-related.

Canada Pension Plan benefits vary and depend on future legislation

A private plan provides you with both guaranteed coverage and guaranteed premiums.

Long Term Care

There is a real chance that at some point in your life you may need to enter a long term care facility or receive special medical care in your home. This type of care does not come cheap, and depending on the level of care you may want or need, the cost may not be paid by your government health plan. With the benefit that comes from long term care insurance, you may not have to withdraw from your savings, or fully rely on other sources of funding.

Taking Care of Your Future

Cindy David Financial Group is a boutique estate planning firm serving families and businesses in British Columbia. We help you to build and protect wealth, retire on your own terms, and give back to your community in a meaningful way. We also specialize in business succession and continuation, helping owners to transfer their business interests in a smooth and tax-efficient manner.